Five million homes owed £89 each in gas bill overpayments

Published 16th Dec 2009

More than five million UK households are in credit with their gas supplier by an average £89 each, making a total of £454million, it is claimed.

On the other side of the equation, the firms are owed an estimated £280million by customers who are behind with their gas bill.

The figures suggest that the big six gas suppliers are sitting on a cash mountain of £174million which is subsidising their businesses and, potentially, generating income through interest.
Gas

More than five million UK households have been overpaying their gas bill by an average of £89 each

The situation stems from the fact that energy suppliers are failing to take accurate meter readings of customers' gas use. As a result, the monthly direct debits they demand are often too high.

The claims from the price comparison website Moneysupermarket.com suggest that 80 per cent of people who have overpaid for gas have not asked for their money back, probably because they are unaware of the fact.

At the same time energy giants are making bonanza profits because they have failed to pass on dramatic falls in the wholesale cost of gas and electricity to customers.

Scott Byrom, utilities manager at the website, said there have been some price cuts for households this year, mainly for the minority who have an online account.

However, he said: 'It's unsurprising customers are still finding themselves in credit with their gas supplier as direct debit arrangements may not have been updated to reflect these price changes.

'Even more concerning is that four-fifths of bill payers with "cash on float" have not asked for their money back. This is a clear oversight, especially when many of us are feeling the financial pinch.'

The director of the industry body, Energy UK, Christine McGourty, said: 'This research is misleading as it doesn't reflect the fact that people use different amounts of energy at different times of the year.

'So it is common for customers to be in credit towards the end of the summer, when they have used less energy, and then to owe their energy company money during the winter months when they have the heating on.

'A regular direct debit payment keeps bills relatively stable over the year and helps people to budget. Customers can of course at any time request a refund or pay off any money they owe.'

Source: ' Daily Mail '

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